Recent manipulations on vertebrates showed that the fear of predators, caused by prey after they perceived predation risk, could reduce the prey's reproduction greatly. And it's known that predator-prey systems with fear effect exhibit very rich dynamics. On the other hand, incorporating the time delay into predator-prey models could also induce instability and oscillations via Hopf bifurcation. In this paper, we are interested in studying the combined effects of the fear effect and time delay on the dynamics of the classic Lotka-Volterra predator-prey model. It's shown that the time delay can cause the stable equilibrium to become unstable, while the fear effect has a stabilizing effect on the equilibrium. In particular, the model loses stability when the delay varies and then regains its stability when the fear effect is stronger. At last, by using the normal form theory and center manifold argument, we derive explicit formulas which determine the stability and direction of periodic solutions bifurcating from Hopf bifurcation. Numerical simulations are carried out to explain the mathematical conclusions.